The CSOK Plusz has arrived – the real estate market is booming!
Nowadays, inflation, rising property prices, and constant planning and calculations are central topics, as we all want to ensure a stable future and dream home for our children and ourselves.
In this article, through a few questions and answers, we will explore the impact of the CSOK Plusz on the real estate market and when it is the best time to buy a property.
What economic changes and/or government measures would be needed for the number of property transactions and home constructions to increase again?
The short and simple answer is any measure that results in a decrease in inflation. In recent years, the globally rising—especially high in our country—inflation has led not only to higher base interest rates but also to increased costs of materials and labor compared to usual. The higher base interest rates resulted in higher market loan rates, which caused a significant portion of buyers to disappear from the market. Our recent observations confirm that there was more supply last year compared to one and a half to two years ago, which resulted in decreasing demand in recent times.
At iDOM, we feel this less; there has been little change in the pace of purchases compared to last year. Thanks to the great locations of our projects, the quality of our developments, and the reliability of our company, many continue to choose us today.
What factors could influence the development of apartment prices over the next year? What could be the main trend?
The first and most important factor, from every perspective, is the development of inflation. If the price of building materials increases, apartment prices will also rise. At the same time, in the current economic situation, inflation-linked wage increases and GDP growth will further push these values up. Instead of raising our prices indiscriminately, we have focused more on examining the cost side. Today, we place much more emphasis on continuously monitoring our costs than before: we have introduced new internal systems that allow us to better optimize and structure the total development cost. This ensures that every buyer can move into their new home with satisfaction.
Another very important factor is population growth. The more children families have, the more government support they can receive, so with population growth, the demand for properties also increases.
We believe that if we can offer a really good product at a good price, there will always be potential buyers. The main direction at iDOM is to build as optimally as possible while maintaining the perfect quality we have provided so far.
Who are the main groups of new home buyers at the moment? How is the sales trend developing?
Research shows that all generations are active in the real estate market, but their purchasing habits and needs differ. Only 30% of people under 30 can afford a second-hand apartment, while only about 7% can afford a new-build. It’s important to know that real estate is always a timeless, good investment, so many opt for purchasing with available loan options.
We must also consider the purpose of the purchase. It could be a first home, a dream home, or an inflation-proof investment, but the number of “starting over homes” is also rising. This category includes middle-aged adults who are looking for smaller homes due to life changes, such as a divorce.
From our experience, the key factors for making a purchase decision are as follows: a good loan option, family assistance, state support, practical and comfortable apartments, a good location, low utility costs, and easy accessibility.
When can mortgage lending pick up again?
Although we have not yet reached the levels of 2022, we are seeing noticeable growth. Consumer loans have increased by 75%, and the number of mortgages has also shown a significant 6-7% rise. Currently, not only is the CSOK Plusz state support available, but since January, we have also had access to favorable loan structures with capped APR.
Statistics still show that the most popular loan is the baby expectation loan, followed by loans for construction and renovation costs, and finally, mortgages without state support. Despite this, it is already noticeable that in the past year, the number of property purchases has grown more on average than the number of expansions or reconstructions.
So, we can confidently state that mortgage lending is already picking up again, and we expect further growth as more favorable opportunities become available, or as more people take advantage of the current support options.
What changes could the introduction of CSOK Plusz in 2024 bring to the demand trends?
The data above clearly shows that government subsidies have significantly boosted housing loans and the real estate market.
As previously mentioned, population growth has a strong impact on the increase in demand. Therefore, if subsidies encourage families to have children, the number of property purchases could continue to rise in the coming years, whether for second homes or more spacious, family-friendly apartments.
However, the CSOK Plus alone is not enough, as it does not affect singles or young professionals. But the more favorable loan options bring everyone closer to purchasing a home.
At iDOM, we offer solutions not only for families but also for singles, young professionals, and investors!
How can iDOM’s latest project connect with the CSOK Plusz?
In the design of our project, we placed great emphasis on creating apartments that meet the criteria of the CSOK and align with the home creation vision of those who will benefit from it.
iDOM offers practical homes for every situation. Our properties are available in multiple locations, ensuring that everyone finds the perfect place for them. We are always flexible in adapting to the outlined requirements, as our apartments are brand new and feature modern engineering solutions that ensure low utility costs.
When applying for the CSOK Plusz support, we can discuss the family’s needs together, including the spacious apartments’ locations and advantages. With the current subsidies, everyone can more easily access their dream home – Together, we will create the future of your family!
